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Illinois Real Estate > Unit 4 - Real Estate Agency > Flashcards

Unit 4 - Real Estate Agency Flashcards

1
Q

Define Statutory Law

A

The laws, rules & regulations enacted by legislatures

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2
Q

Define Common Law

A

The rules of a society established by court decisions

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3
Q

Define General Agency

A

The relationship of the broker. managing broker or leasing agent

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4
Q

Agency relationships in Illinois are governed under which law?

A

Under statutory law & based on Article 15 of the Real Estate License Act of 2000

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5
Q

Define Agency

A

A relationship in which a real estate broker or licensee represents a consumer with the consumers consent

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6
Q

Define Agent

A

The individual who is authorized and consents to represent the interest of another person

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7
Q

Define a Brokerage Agreement

A

An agreement between a sponsoring broker and a consumer for licensed activities to be provided

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8
Q

Define a Consumer

A

A person or entity seeking or receiving licensed activities

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9
Q

Define a Client

A

A person who is being represented by a licensee

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10
Q

Define a Customer

A

A consumer who isnt being represented but is receiving ministerial acts

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11
Q

Define Ministerial Acts

A

Acts that a licensee may perform for a consumer that are informative or clerical

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12
Q

Define a Principle

A

The client to whom the agent gives advise and counsel

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13
Q

Define a Fiduciary

A

One who is placed in a position of trust and confidence

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14
Q

What are the Fiduciary Duties

A 
Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality
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15
Q

Duty of Care

A

The agent should know all facts pertinent to the principles affairs

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16
Q

Duty of Obedience

A

The fiduciary relationship obligates the agent to act in good faith at all times

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17
Q

Duty of Loyalty

A

Illinois license law prohibits a licensee to serve as a dual agent in any transaction in which they are a party to the transaction

18
Q

Duty of Disclosure

A

The agent is obligated to disclose facts that a reasonable person would feel are important in choosing a course of action

19
Q

Duty of Accounting

A

Illinois licensees are required to deliver true copies of all executed or initialed documents within 24 hours

20
Q

Duty of Confidentiality

A

Client information that can affect negotiations must be kept confidential

21
Q

Define Conversion/Commingling

A

The practice of using escrow funds as the licensees own money which is illegal

22
Q

Define a Material Fact

A

Any fact that, if known, may reasonably be expected to affect the course of events

23
Q

Opinion vs Fact

A

Real Estate licensees and staff members must always be careful that the consumer understands whether a statement is opinion or fact

24
Q

Define Puffing

A

Generalized, vague, exaggeration of a properties benefits

25
Q

Define Negligent Misrepresentation

A

Occurs when the licensee shouldve known that a statement about a material fact was false

26
Q

Illinois Real Estate License Act

A

Clearly states that a licensee shall not be liable to a client for providing false info if the false info was provided by the customer

27
Q

Define Latent Defect

A

A structural defect that would not normally be uncovered over the course of an ordinary inspection

28
Q

Define Stigmatized Properties

A

Properties that society has branded undesirable because of events that occurred there

29
Q

Define Megans Law

A

A general name for state and federal laws requiring law enforcement to make registered sex offender information public

30
Q

How can an agency be formed?

A

Based on a formal agreement (express agency) or from the parties behavior (implied agency)

31
Q

Real Estate License Act of 2000

A

Requires that all exclusive brokerage agreements be in writing

32
Q

Define Gratuitous Agency

A

An agency that exists even if no fee is involved

33
Q

In Illinois…

A

The licensee is required to disclose to a client the sponsoring brokers compensation and policy

34
Q

In Illinois…

A

Licensees are not allowed to obtain a written brokerage agreement that doesn’t expire automatically

35
Q

Define an Agency Coupled with an Interest

A

The agent has an interest in the subject of the agency, such as the property being sold

36
Q

Define a Universal Agent

A

A person empowered to do anything the principle could do personally

37
Q

Define a General Agent

A

May represent the principle in a broad range of matters related to a particular business/activity

38
Q

Define a Special Agent

A

Authorized to represent the principle in one specific act or business transaction

39
Q

Define a Designated Agent

A

A person authorized by the sponsoring broker to act as the agent of a specific principle

40
Q

Define Single Agency

A

When an agent/firm represents only one party exclusively in a real estate transaction

41
Q

Define Dual Agency

A

The agent represents 2 principles in the same transaction (requires consent from both parties)

Illinois Real Estate (24 decks)

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